Strategic Computing and Communications Technology Group H: Standards Final Report
The computer and communications world has been moving at a feverish pace lately. Cellular networks now allow mobile communications from virtually anyplace in the world. Recent advances such as the Internet and the WWW have made a wealth of information available to the public. As attempts are made to make communications and information exchange easier for people, many of the traditional barriers between different media are blurring as the different technologies begin to merge. Computers that are televisions and telephones are now starting to appear from vendors such as Sony and Gateway. This is just the beginning.
Of course, the explosion in products and services has been accompanied by an explosion in companies. There are a multitude of issues that companies need to address in order to contribute a successful and beneficial product. Issues such as network externalities, cost and pricing, human factors, regulation, standards, and organization (to name just a few) are as crucial to the development process as engineering research and development. Companies that do not pay attention to these issues face monumental difficulties and competition. In addition, many products for todays technology marketplace are much too complex to produce without collaboration on a wide scale.
One of the issues of importance is standards. In situations where a multitude of companies are working on a similar product, problems can arise from inadequate communication or lack of cooperation. Multiple products intended for the same purpose, but utilizing resources in different manners, may be unsuccessful in the marketplace. Consumers prefer compatible products that are easily interchangeable and convenient. For example, during the 1980's, two different VCR formats (Beta and VHS) competed for market share. The market was unable to support both and VHS eventually became the de facto standard. Unfortunately for Sony (developers of the Beta format), lack of cooperation cost them millions in development costs and billions in revenue.
The purpose of this paper is to discuss how standards influence the development and acceptance of new technologies and how such standards and the standardization process effect business strategy.
Four case studies will be used as the basis of discussion. The authors of this paper also propose two theses which will be addressed further at the end of the paper:
[Table of Contents] [Back] [Next]